Nike is stepping back.
The struggling sneaker giant closed 11 stores across the U.S. in July, including one in a notable upscale shopping mall in Northern California.
This wave of closures affected various states, notably Texas, New Jersey, Illinois, North Carolina, Georgia, Florida, Missouri, Maryland, and Kentucky.
In California, the brand permanently shut down its location at the bustling Santana Row mall in San Jose— a go-to spot for many tech professionals with disposable income.
Federal Realty, the operator of Santana Row, indicated to a local business journal that this decision wasn’t specific to that location or market, but rather part of a larger strategic shift as the company seeks its way forward.
Even with these closures, California still boasts the highest number of Nike stores in the nation, totaling 39.
The California Post reached out for comments from Nike regarding the shutdowns.
This reduction is happening alongside significant operational changes announced by Nike in April, which involved laying off around 1,400 employees in global operations, primarily within the tech sector.
Nike’s sales also took a hit recently, dropping by 7% in the fourth quarter of the fiscal year 2026.
The alterations aim to improve the company’s supply chain efficiency and modernize its technology usage to become “more responsive, resilient, responsible, and efficient,” as stated by Nike.
However, the brand seems to be in quite a slump, with negative growth in both footwear and equipment. Revenue from their stores is down by 7%, while Converse saw a staggering 32% decline in its revenue. Nike Direct faced a 9% drop, and Nike Digital wasn’t spared either, falling by 12%.
Nike President and CEO Elliot Hill, during a fourth-quarter earnings call in June 2026, admitted to the challenges the company is facing. “We know we’re not living up to our full potential,” he remarked.
